Chicago Truck Drivers, Helpers and Warehouse Workers Union Pension Fund, et al. v. El Paso CGP Co., et al.

Case Updates

The Seventh Circuit refused to consider NCLC’s brief.

NCLC sought reversal of a district court decision holding a company responsible for its former business unit’s withdrawal liability under a multiemployer pension plan without proper notice. In its brief, NCLC argued that the opportunity to challenge withdrawal liability should not be waived based on a boilerplate proof of claim filed in bankruptcy court that does not meet the statutory notice requirements. The case raises serious risks for all companies that have engaged or will engage in business acquisitions or dispositions, whether through stock sales, mergers, spin-offs or asset sales. Businesses need workable rules specifying when they can be liable for the subsequent withdrawals of their former business units that go into bankruptcy.